3. On July 16 Kim Taylor, Council Auditor, sent an email to Joey Greive, Director of Finance and Administration and Jason Gabriel, General Counsel requesting more in-depth information to the questions that were submitted to Brian Hughes:

From Kim Taylor July 16, 2020
Subject: Hosting of the Republican National Convention

Jason and Joey,

I received a copy of the responses on the Council President’s questions on the RNC and wanted to follow up on a few of them and I also had a couple of additional questions.

1.       Are there any executed agreements between any parties related to the RNC, whether it be with the DOJ or ASM or any other parties, that would provide more specifics on how the financing aspects will work? If not, when will these be finalized?

2.       In 1(a), Brian indicates there is some possible legislation forthcoming. Can you please elaborate on what exactly will be forthcoming for our review in legislation?

3.       Can you please elaborate on Brian’s response to 2(a) as to whether any agreements will require City Council approval?

4.       In Brian’s response on #3, it indicates that, “The budget for the city will be made to match the funding authorized by the US Dept of Justice via federal grant. The amount is not yet finalized, although a projection is approximately $30 to $40 million in federal grant money."  

·         Who is this funding coming from ultimately and who determines what the amount the City will receive? We are trying to understand this in relation to the current commitments with the City of Charlotte?

·         Is the $30-$40 million the total that the City will receive? Are there any other funding sources? Is this funding a portion of the $50 million that the City of Charlotte was slated to receive?

·         Will the City have the entire $30-$40 million of funding in hand before any costs related to the RNC are made?

·         While I understand a budget can be built with what you are given, this still doesn’t address who is responsible if costs are exceeded. The response on #6 indicates that the host committee and their partners are responsible for managing the budget. Does this mean that they are also responsible for any costs in excess of the $30-$40 million rather than the City? If not, who is responsible? Normally, when event revenue does not cover the cost of the event, ASM is made whole by a City contribution. Will that be the case for this event if costs exceed the $30-$40 million provided by the DOJ?

·         Will the City will be continually tracking all costs on a real time basis to ensure the City stays within budget? How will this occur?

·         Will there be assistance from other local law enforcement agencies (particularly surrounding counties) and will they seek reimbursement from the City for their costs?

·         Are there any other non-local law enforcement agencies that the City would be responsible for reimbursing? Will the City have to reimburse for any travel related costs for these agencies? If so, how will this be tracked and are there any limitations on these types of expenditures, such as costs related to hotel accommodations?

5.       For the most recent visit from the Vice President related to the RNC, did the City bear any costs for any JSO officers that were there and if so, will the City be reimbursed for these costs?

6.       Is the federal government or the RNC responsible for covering any costs should there be damage to City venues or the City as a result of the event?

7.       Is the federal government or the RNC responsible for covering costs related to COVID testing during the RNC or following the RNC if there is an increase in the number of COVID cases?

Thank you,

Kim

Kim Taylor, CPA

Council Auditor

Council Auditor’s Office/City of Jacksonville

2. In a July 15 email Brian Hughes, chief of staff to Mayor Lanny Curry, responded to Council President Thomas Hazouri's July 8 memo:

Council President Hazouri as you know I took receipt of the memo with your RNC questions on last Thursday after hearing from media on Wednesday night of its existence. Since then, my team and I have been completing the mayor’s budget and preparing it for Council’s consideration, so thank you for your patience.

Also, as we discussed on the phone yesterday, I always welcome a phone call should you need more immediate assistance.

Below in order are the questions you sent with the most information I know about each listed as the answer. We only learned about 3 weeks ago of the decision to move convention activities to Jacksonville, and the events would commence in about 40 days. With this accelerated timeline there are still many unknowns. But below is the most up-to-date information I have:

1.           Will there be any legislation related to the RNC in order for the City to host this event?

Answer: Yes

a.           If so, what is the timeline for any upcoming legislation of when it will come to the City Council for consideration?

Answer: ASAP. I believe OGC notified you that they are working through possible legislation now. I am led to believe they may have some drafts next week.

b.           If not, why wouldn’t at least an appropriation bill be required?

Answer: I believe it will include language that considers the city’s appropriation of federal grant dollars for public safety.

2.           Will the City have an agreement with the RNC or other parties?

Answer: The city, through our venue managers at ASM Global, will have rental/use agreements with a third party for entertainment venues. I am uncertain what entity will be a party, but it may be the 2020 Host Committee.

a.           If so, will the agreement(s) require City Council approval?

Answer: I don’t believe that is a requirement under our ordinance but I propose OGC is better equipped to answer.

b.           If the City has executed any agreements related to the RNC, please provide copies.

Answer: The Administration has no agreements at this time, and I am unaware of any City department having any such agreement now.

3.           What is the total estimated cost to host the RNC and who will be covering these costs?

Answer: The budget for the city will be made to match the funding authorized by the US Dept of Justice via federal grant. The amount is not yet finalized, although a projection is approximately $30 to $40 million in federal grant money.

4.           With the City receiving National Special Security Event (NSSE) designation for the RNC, what does this mean from a funding standpoint and how will this funding process work?

Answer: This designation activates and allows for the use of many federal law enforcement resources to lessen the public safety burden on local jurisdictions.

5.           Will the City have to front any costs?

Answer: I am not aware of any upfront costs at this time. Our expectation is the federal grant will be conveyed and used by the city to handle public safety expenses.

a.           If the City has to front any costs, what will be the funding source for these costs?

Answer: At this time I don’t think this is applicable

b.           If the City has to front any costs, what is the timetable for the City being reimbursed and is there a risk that the City may not be reimbursed for all costs?

Answer: At this time I don’t think this is applicable.

c.           If the City does not have to front any of the costs, when will the funding be sent to the City and when will the City Council need to consider the appropriation of these dollars?

Answer: See earlier discussion of legislation.

6.           Is there a cap on the amount of funding that the RNC or other parties will put towards this event? If so, who is responsible for costs if the cap is exceeded?

Answer: The city’s cap is the amount of the DOJ grant. Budgets for the events are the responsibility of the Host Committee and their partners.

7.           Has the City expended any funds to date related to the RNC?

Answer: I am unaware of any expenditures, and CFO Grieve shares the same opinion.

a.           If so, how much?

Answer: At this time, not applicable.

b.           If so, where have the funds been expended from?

Answer: At this time, not applicable.

8.           If the City expends funds related to the RNC and the event is canceled, will the City be able to recover any of these costs? Please explain the basis for the answer.

Answer: I am unaware of any plan to expend COJ dollars without having reimbursement in place. DOJ has committed that approved grant expenditures would not require return of funds to DOJ, even if the event was cancelled.

9.           How is the City going to be tracking costs related to hosting the event?

Answer: All expenditures will be tracked in a specific account managed by CFO Grieve and his team.

10.        If the mandate for wearing masks is still in place, will the participants attending the RNC be required to wear masks?

Answer: The current mask order requires individuals who are unable to practice social distancing to wear a mask.